Detroit Medical Center: Cuts Threaten Projects

DETROIT (WWJ/AP) – The Detroit Medical Center says investments promised as part of its sale to a for-profit company could be in jeopardy because of state funding cuts.

State lawmakers cut funding to the tune of $20 million, with matching federal grants, for the DMC’s Hutzel Women’s Hospital, according to a report in The Detroit News.

Republican Senate Appropriations Committee Chairman Roger Kahn of Saginaw Township on Tuesday, however, introduced a provision to restore the funding.

The planned investments are part of a deal made when the Detroit Medical Center was sold to Vanguard Health Systems in 2011. Vanguard promised to invest $500 million in new construction over five years, plus $350 million in routine capital spending over five years.

Those commitments remained in place when Vanguard was acquired by Dallas-based Tenet Health Systems in June.

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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